After DJT and Reddit, is Circle the next tech IPO to come in Q2?

Trump Media (DJT) and Reddit (RDDT) were the biggest names to go public in the first quarter of the year. To a large extent, these companies performed well shortly after listing in New York, which could incentivise more tech firms to go public.

DJT stock price has jumped by over 40% after going public, giving it a market cap of over $7 billion. While Reddit shares have dipped recently, they remain over 45% above their listing price.

Therefore, this performance, coupled with the ongoing bull market, means that other technology companies may decide to go public in the second quarter of the year.

Circle Internet Financial will likely be the next big company to watch in Q2. First, the company has already filed its documents with the Securities and Exchange Commission (SEC). This is usually one of the first steps before going public.

Circle, the parent company of USD Coin, has had aspirations to go public for a long time. It previously attempted to list through a SPAC merger that valued it at over $11 billion.

Second, Circle will likely want to take advantage of the ongoing crypto and stock boom. Bitcoin is sitting at $70,000 while the total market cap of all coins has jumped to over $2.7 trillion. In the stock market, the S&P 500 and Nasdaq 100 indices have all soared to their record highs.

Further, there are signs that Circle’s business is bouncing back. According to CoinMarketCap, the total market cap of USD Coin surged to over $55 billion in 2022 and then collapsed to $24.7 billion in 2023 after the collapse of Silicon Valley Bank (SVB). These assets have now bounced back to $32 billion.

Circle does well when the volume of USD Coin is rising because of how the company makes money. Its last S1 statement showed that the company makes money in three main ways. At the time, most of its revenue came from transaction and treasury services, USDC interest income, and SeedInvest.

Transaction revenue comes from the normal usage of the stablecoin. For example, when you send money, the company takes a small commission. 

Interest comes from its investments in top assets like government bonds. This is a notable revenue source since interest rates are sitting at their highest point in 22 years, meaning that its interest income has jumped sharply in the past few months. 

Circle is no longer making money from SeedInvest, a platform that was acquired by StartEngine in 2022. Therefore, Circle will likely want to take advantage of the elevated interest rates before going public.